UK considering £450m Iran debt settlement to help free jailed Briton

The money would not be a "price for Nazanin Zaghari-Ratcliffe's release" but a "goodwill gesture", says Sky's Alistair Bunkall

The Government is considering settling an outstanding £450m debt with Iran as part of attempts to secure the release of British prisoner Nazanin Zaghari-Ratcliffe, Sky News understands.

Foreign Office officials are trying to find ways to release the historical sum - owed for a cancelled arms deal in the 1970s - in the face of UN sanctions.

The Prime Minister's spokesperson denied the move had anything to do with Mrs Zaghari-Ratcliffe's case.

Sky's Defence Correspondence Alistair Bunkall said the money should not be considered a ransom payment.

"This is effectively Iran's money and they want it back," he said.

"Officially, the £450m debt and Mrs Zaghari-Ratcliffe's release are two separate issues - the UK Government doesn't pay ransoms.

"But Iran, particularly the Revolutionary Guard, will want something in return for her release, and payment of this debt could be it."

He added that while the debt has been neither demanded by Iran nor offered by the UK, the story was likely revealed to "test Iranian reaction and, to a lesser extent, British public opinion".

The money was paid to the UK by Iran's former Shah in exchange for 1,750 Chieftain tanks.

But he was toppled in the revolution of 1979 and the full order cancelled.

The Hague's Permanent Court of Arbitration ruled in 2001 that the outstanding funds should be returned.

Asked about reports the debt repayment could be used to help free Mrs Zaghari-Ratcliffe, the Prime Minister's spokesperson said: "We are clear that we don't see any link between these two issues. That's not something I recognise."

Boris Johnson is trying to secure the jailed mother's release.

He apologised to her on Monday for the "further anguish" caused by his previous claim she was "training journalists" when she was visiting Tehran in 2016.

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Bailing out Boris? Paying a ransom for Mrs Zaghari-Ratcliffe's release? or even caving in to blackmail from her husband? What a mess.